1. Paying Off Student Loans—Finally
For millions of Americans, the pause on federal student loan payments that ended in late 2023 reignited financial urgency. In 2025, many are focusing on crushing their student debt before committing to a mortgage, according to Jessica Dickler of CNBC. With interest rates on some federal loans exceeding 6%, it makes more financial sense to tackle that debt first. Homeownership feels like a luxury when you’re still paying for a degree you earned a decade ago.
It’s also about mental relief—many say they feel like they’re “clearing the runway” for future financial commitments. A recent survey from U.S. News found nearly 50% of borrowers are prioritizing student loan repayment over major purchases. That includes houses, which now demand higher down payments due to rising home prices. So for many, it’s loans first, keys later.
2. Starting Businesses and Side Hustles
Rather than tying themselves to a mortgage, a surprising number of Americans are putting that cash into starting a business. Whether it’s an Etsy store, consulting gig, or food truck, side hustles have turned into full-time endeavors. According to Mark C. Perna of Forbes, most of Gen Z aspire to be their own boss, and they’re acting on it.
This shift isn’t just about money—it’s about lifestyle control. With fewer people chasing the “white picket fence” dream, entrepreneurship offers both flexibility and purpose. And without a mortgage hanging over their head, they’re freer to take those financial risks. Homeownership can wait—building something of their own can’t.
3. Supporting Aging Parents
The cost of eldercare has ballooned, with assisted living facilities often running over $60,000 per year. For many Americans, supporting aging parents is now a top priority, both emotionally and financially. Some have moved back home to provide care, while others are helping cover medical bills and in-home support, according to Kamaron McNair of CNBC.
The pressure is especially high on the “sandwich generation”—those raising kids while caring for older parents. According to AARP, over 38 million Americans are unpaid family caregivers in 2025. That often leaves little room (or budget) for a mortgage. Instead of investing in property, they’re investing in family stability.
4. Traveling the World (or Just the Country)
With remote work still widespread and digital nomad visas on the rise, Americans are trading fixed addresses for flexible adventures, according to Suzanne Bearne of The Guardian. Instead of a mortgage, they’re buying camper vans or Airbnb-ing their way across Europe and Asia. International travel is back in full swing post-COVID, and many are seizing the moment while untethered.
In fact, the U.S. Travel Association reports a 19% increase in outbound travel from the U.S. year-over-year in early 2025. Younger millennials and Gen Z are especially opting for experiences over equity. For them, the idea of “settling down” can wait—seeing Machu Picchu or the Amalfi Coast can’t. It’s hard to justify a 30-year mortgage when your bucket list still needs checking off.
5. Moving Back in With Parents (and Saving Big)
Multigenerational living is at a modern high, with Pew Research showing that nearly 25% of U.S. adults aged 25–34 now live with their parents. It’s not always glamorous, but it’s financially strategic. Sky-high rents and home prices make saving for a down payment near-impossible without cutting major costs.
Instead of draining their earnings on overpriced apartments, many are choosing to regroup and save. Living rent-free—or cheap—can help them stockpile enough cash for long-term goals. It’s a move rooted more in practicality than embarrassment in 2025. With inflation still squeezing budgets, living with family might be the smartest investment they’re making.
6. Investing in the Stock Market and ETFs
Instead of putting $60,000 into a house down payment, Americans are pouring it into index funds, crypto, and high-yield ETFs. The S&P 500 has been on a strong upward trend into 2025, and people see faster short-term returns in the market than in home equity. Especially for those priced out of coastal real estate, investing elsewhere feels like a smarter play.
Retail investing apps like Robinhood and Fidelity are seeing record user engagement. With fewer barriers to entry and fractional shares, people can start small and still feel progress. It’s not just about avoiding housing debt—it’s about building wealth in a more flexible way. They can always buy a house later, but they want that portfolio growing now.
7. Paying for Childcare and Education
Childcare now rivals a second mortgage in cost—often exceeding $20,000 per year in many metro areas. For parents, the financial math just doesn’t add up to both raise a kid and buy a home. Many are choosing to channel their funds into quality daycare, private school tuition, or educational enrichment.
In fact, the Department of Labor notes that childcare costs rose nearly 6% in the last year alone. Some parents say they’re prioritizing their child’s development over long-term real estate plans. It’s not that they don’t want to buy a home—it’s that they can’t afford to do both right now. In 2025, the kids come first, and the white picket fence might just have to wait.
8. Relocating to Cheaper Countries
A growing number of Americans are moving abroad to escape the rising cost of living at home. From Mexico to Portugal to Thailand, they’re finding cheaper rents, better healthcare, and often a higher quality of life. The cost of a modest condo in Austin might buy you a villa in Bali.
Remote work makes this dream more accessible than ever, and expat communities are booming. International Living reports that inquiries about retiring or relocating overseas are up 34% year-over-year. Instead of overleveraging themselves on a U.S. mortgage, they’re finding financial freedom elsewhere. In 2025, “home” doesn’t have to mean “American soil.”
9. Paying Off Credit Card Debt
With APRs hovering near 24% on average, credit card debt has become a financial emergency for many. Americans collectively owe over $1.1 trillion on credit cards as of 2025, a record high. Instead of piling on a mortgage, people are focusing on cleaning up high-interest debt first.
It’s a practical, if unglamorous, move. Carrying $10,000 in credit card debt at a 24% APR means nearly $2,400 in interest annually. That kind of financial drag makes homeownership even harder. People are waking up to the reality: it’s better to stabilize before investing in something as big as a home.
10. Renting in Style
Renting used to be a temporary phase, but now it’s a lifestyle choice—especially in major cities. High-end apartments with amenities like rooftop pools, coworking spaces, and 24/7 gyms offer convenience without the maintenance. For many, renting means less responsibility and more freedom to move.
According to RentCafe, the number of households earning $150K+ who choose to rent has increased significantly in the past two years. With rising mortgage rates and home prices, it often costs less per month to rent a luxury apartment than to buy a mid-tier home. Renting isn’t settling anymore—it’s strategic. And for urban professionals, it’s the smarter call in 2025.
11. Prioritizing Mental Health and Wellness
Therapy, gym memberships, retreats, and even life coaching have become common line items in monthly budgets. Mental health awareness is higher than ever, and many Americans are putting their well-being before long-term financial commitments. A mortgage, for some, feels like an added stressor they’re just not ready for.
In fact, spending on wellness services in the U.S. rose 12% from 2023 to 2024, and the trend has continued into 2025. From meditation apps to personal development courses, people are opting to spend their money on feeling better now. The idea of waiting until retirement to enjoy life just doesn’t resonate anymore. They’re choosing health over home equity.
12. Saving for IVF or Adoption
For some Americans, the journey to parenthood is complicated—and expensive. IVF treatments can cost upwards of $20,000 per cycle, and adoption fees often range from $25,000 to $50,000. Rather than saving for a house, they’re channeling every spare dollar into building a family.
This decision isn’t just emotional—it’s also financially strategic. Many hopeful parents are delaying homeownership to avoid spreading themselves too thin. In 2025, fertility and family-building are top priorities for many millennial couples. A nursery matters more than a mortgage right now.
13. Paying Rent While Waiting for Home Prices to Drop
Many would-be buyers are sitting on the sidelines, hoping the housing market will cool off. Even though mortgage rates have started to stabilize, inventory remains low and prices are still historically high. Renting, for now, feels like the safer bet while waiting for the bubble—or at least the frenzy—to settle.
Redfin and Zillow have both reported a notable uptick in “wait-and-see” buyers in 2025. These renters are actively saving and watching the market, ready to pounce when prices become more reasonable. They’re not giving up on owning a home—they’re just trying not to overpay for one. Patience is part of their investment strategy.
14. Living in Tiny Homes or Houseboats
The minimalist lifestyle is gaining traction, and so is alternative housing. From fully decked-out vans to stylish 300-square-foot homes, Americans are rethinking what “home” really means. The average new home in the U.S. now costs over $430,000—tiny homes can cost less than $100,000.
Shows on Netflix and YouTube have glamorized the lifestyle, but it’s not just a trend—it’s a solution to affordability. Many people are finding freedom in going small, mobile, or even off-grid. They may not have a mortgage, but they’ve still got a roof over their heads—and a lot less stress under it.
